Does a High EPC Rating Mean a Better Property Valuation?

Does a High EPC rating mean a better property valuation?

26 Feb Does a High EPC Rating Mean a Better Property Valuation?

Improving your home value through energy efficiency

With today’s importance on environmental consciousness, energy efficient homes are achieving higher prices on the property market. Energy efficient homes are priced at a premium because their ‘green’ upgrades offer both reduced utility bills and avoided maintenance expenses. These higher premiums also reflect the improved quality of life that green upgrades can offer homeowners, from health benefits to enhanced in-home comfort. Residential energy efficiency is an investment that yields financial benefits in the form of both immediate monthly savings as well as future profits when the house has been sold.

What is the Energy Performance Certificate (EPC)?

The Energy Performance Certificate (EPC) is required when selling or renting a property and includes a rating given to the property on a scale of A to G. It measures the quality of the property’s energy efficiency and includes recommendations on ways a property can be improved to cut fuel bills, improve efficiency and reduce carbon emissions.

Benefits of selling an energy efficient home

Energy efficient homes are growing in popularity, with sellers highlighting the benefits of efficient upgrades in the face of rising energy prices. When the time comes to sell your house, you should inform your estate agent or solicitor of the energy efficient measures that are now a part of your home’s infrastructure. Details of upgrades such as insulation or draught-proofing will be passed on to future owners, along with their energy savings. In addition, these upgrades distinctly improve habitation comfort within the home and can be a potential selling point.

How energy efficiency improves home value

While it is still a work in progress, growing evidence reveals that greater energy efficiency translates to higher home values. This correlation is increasing over time.

Unlike improvements such as adding a bedroom or updating a kitchen, which are typically expected to add value, the value of energy efficiency improvements relates to energy cost reduction.  This means that a given reduction in energy use, whether the result of a major improvement or a simple (i.e. low cost) one, can have the same impact on home value.  The reason for this is that regardless of how the energy cost was reduced, the lower cost of energy means the homeowner has more monthly budget available for other expenses, such as a bigger house. Energy-efficient homes produce immediate positive cash flow for home buyers because the reduction in monthly fuel bills more than offsets the higher monthly mortgage payment needed to finance such investments.

Here are some additional ideas on how you can improve your homes energy efficiency

If you are looking for a RICS qualified surveyor to carry out a property survey, get in touch today by calling us on 0131 608 0175, email us at or send us a message online.


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